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Market Movers Americas, Oct. 24-28: Offshore wind on the rise; economic impacts on shipping and steel
On this week's Market Movers Americas with senior managing editor, Gary Gentile:
- West Coast offshore wind auction scheduled
- Inventory surplus, inflation pressure container box rates
- Steel sector faces headwinds, price dips
This week, the California Energy Commission will host an offshore wind workshop on identifying suitable space for wind energy areas. The Commission has a preliminary goal of up to 25 GW by 2045 to help meet the state's goal of a zero-emissions grid.
The US has a goal of 30 GW of offshore wind by 2030, and the Bureau of Ocean Energy Management recently announced that the first US West Coast offshore wind lease auction will be held December 6 with the potential to produce more than 4.5 GW of offshore wind energy.
In shipping, inventory surpluses and economic uncertainty indicate that low import volumes will continue through the fourth quarter.
Container shipping rates from North Asia to North America's West Coast seem to have stabilized, but boxes discharging on the East Coast may continue to see rates decline.
Failure to secure a deal with the International Longshore and Warehouse Union has shippers diverting volumes to the US East and Gulf Coasts.
In earnings calls this week, integrated steelmakers will discuss the expected impact of economic headwinds and declining prices on the US steel industry through the end of the year.
Domestic producers have warned that profits would be dented this quarter, and US Steel has already taken two blast furnaces offline.
The Platts US hot-rolled coil index held below $800/st for most of Q3, down from around $1,500 in April.